This is the thirteenth podcast for the power sector corporate strategy study we will soon release as part of our Executive Program.
In this podcast we discuss how the client came to be the primary bidder for a telecom license which is far from their core business.
We also discuss the process we used to decide if the client should keep the license, sell it or do something else.
We developed 4 scenarios for the client. We also explain why immediately exiting this non-core investment hurts the client more than keeping the license. That is a counter intuitive recommendation which has to do with the value of real options.
Although, this may seem surprising, many power companies consider telecoms to be a natural adjacency due to the physical overlap of infrastructure.